Introduction
The Federal Reserve (Fed), the central bank of the United States, plays a pivotal role in shaping the American and global economy. One of its most impactful tools is its ability to set interest rates. These rates, while seemingly technical, have a ripple effect on everything from borrowing costs for individuals and businesses to the overall health of the economy.
This article demystifies the complexities of Federal Reserve interest rates, explaining what they are, how they work, and why they matter to you. Whether you're planning to take out a loan, invest your savings, or simply understand the financial news, this guide will equip you with the knowledge you need.
